how to estimate development effort

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Assume the total cost for the project is given. You need first to scope the project even if you do not have the full detailed requirements but you can assume some of them or add margins later. 7pace is a time-tracking extension for Azure DevOps and Github. Internal friction and time-wasters can negatively impact your development effort, so be sure that you account for these invisible factors. They take into account the details of your task, the resources you have, the rate the cost to time, the duration and whether any third-party services will be required. When will designers be done and their work ready for handoff? Second, since all the results are achieved through a dialogue, this approach improves the accuracy of the estimates and justifies it. Estimations are quite useful for all kinds of projects, including the ones that use agile-based frameworks. You may start with general thoughts about project estimation. But without the right dataset, it may as well be nothing but guesswork. Moreover, not all software project is time and material contracts, some of them are fixed cost projects and this estimate will be used as a foundation to negotiate the project cost. Will the CMO be delighted and say ship it, or will you spend the next sprint hardening your features with surprise edge cases? Now its time to re-estimate: Knowing what I know now, can this project be completed in ten weeks of development effort? The solution is not pad the estimate for safety or dont ever try to estimate anything that cant be accomplished in one sprint. The solution is to change your perspective on what is possible with estimation. It is expressed in terms of person-hours or money. And I worry that what I. I dread having that first big reality check conversation: Well, this part went better than expected, but this part over here turned out to be really tough, and so the date in the estimate doesnt look achievable. When that happens, I feel embarrassed, guilty, and ashamed. This way you won't look like a fool when something changes and effort rises dramatically for a task. at this early stage. In this step, you will need to break your software into smaller components and functions and you can categorize them to a different set of elements, this is similar to work breakdown structure but only for the software components not all the working activities for the software. For example, you would have one stage thats the project scope and listed beneath this heading would include facets such as determining the scope, securing sponsorship, defining resources, etc., ending with scope complete. project management time. There are two types of work breakdown structures. If we assume that our EAF is 1.17 then the adjusted effort will equal to 35 * 1.17 41 Person Months. . Three-point Estimating 1.Strength Unit test , Improve system/domain knowledge for engineers , Re-factoring ,Peer Review..etc. Moreover, as you could notice in our articles about app development, we usually try to break down the tasks into smaller sub-tasks to make our rough project estimates more accurate. . This is especially important for projects with strict deadlines (certain promises to customers, a planned presentation during a particular industry event). Start your software estimation project with what you know, then re-estimate In my own experience, if the first third of the project is spent refining, re-estimating, and identifying the areas where you have controlthen the last third of the project is full of opportunities to go above and beyond. For instance, if a project . We will start with the FPA after we scoped the requirements and decompose the functions, we are ready to identify the inputs, outputs, file accesses and interfaces to external systems. So your team will each vote on how much effort a task involves according to your chosen estimation scale. Combine effort estimates of tasks of activity to produce an estimate for the . I dont want you to feel that way! Instead, you can ask your Agile team to prepare software development time estimation jointly. How to Use Microsoft Project: A Quick Guide, Project Management Process Groups: A Quick Guide, What Is a Cost Baseline in Project Management? Once you have the software development life cycle completed, its time to check your project requirements and ensure they match those defined by your stakeholders or client. The estimation is important because it gives the project team some confidence about the required effort and time to plan ahead for the project. Part of any software development estimate is mapping its life cycle. Here are different ways that a project manager can estimate the effort in a traditional software development project: Expert: Expert judgment requires consulting the experts who perform the tasks, such as the developers and the quality assurance (QA) members, to estimate the project's duration. This story can go on and on, and the estimation will change every time when the new condition is set. Reasonable estimate: 10% of total development time. Our collaborative platform connects hybrid teams to help them work better together. Whats unique to software development estimation is that it takes into consideration the software development companys unique techniques and processes used to complete tasks. How effective and/or automated are a start-up, back up, and recovery procedures? 1. However, your estimates have to be made up of more than just random guesswork! To prevent this, estimates are usually reviewed and corrected (to be more justified) by a more experienced tech-person (as a rule of thumb, a Senior). As a team lead, your role means more than meeting deadlines and crossing deliverables off a checklist. The more information we manage to gather during the first step, the better our estimate is going to be. 6.1 Changes are inevitable 6.2 Tech Stack Different developers have entirely different approaches to problem-solving, which is why the hours they track can also vary significantly. The solution isnt just to provide a wide range and expect your stakeholders will be okay with it. P. S. Were going to dedicate a special article to the Discovery Phase so stay tuned. Effort estimation empowers team leaders like you to make better decisions by predicting the time and resources required to complete a software project. After identifying the weights for all cost drivers, you can multiply all of them to get the EAF. - Adolfo Eliazt - Artificial Intelligence - AI News, A Complete Guide On Understanding Embedded Testing - AppSierra, Estimation Techniques In Development - Estimation Techniques - Overview - Tutorialspoint, Software Development Life Cycle Models and Methodologies, The Software Process Improvement (SPI) - Reward or Risk, Trade-off Analysis Technique - Make the decision easier, The Validation and Verification Model - The V-Model, Unlock Business Growth through mastering Industry Value Chain, 8 Foundational Concepts you should know in the Digital World. Dont forget about the control you have to manage that future. The anxiety comes about a third of the way through the project, when the difference between what I knew at the start and what I, have known is clearer. It means that estimates can help your Product Owner prioritize feature development and group them in such a way that allows delivering an increment on time. So how can you optimize your project estimation techniques for maximum accuracy? The first calculation is called the Basic COCOMO while the second is considered the Intermediate COCOMO. Because of the complexity and the importance of forecasting in software development, its crucial that you use software estimation tools to help you get more accurate figures. With a clear understanding of the project requirements, estimating the effort required to complete the project . We also prepare it for our potential customers who drop us a letter with details about their project and willingness to cooperate. It does this by taking in three categories of estimates. According to Quantitative Software Management, they created a table contains updated function point language gearing factors for 37 distinct programming languages/technologies. I have been working in software development since 2002 in various roles. Do you have a project youd like to discuss? At project inception, the estimation variance is highest except that, at this stage, you need the highest precision you can hope for. Estimating the size, effort, complexity and cost of software projects is possibly the most difficult task in all of Software Development and Project Management. Graphic design - Complex UI elements usually require more engineering effort and take longer to implement. And this is what often happens when youre estimating software development time. "5 Steps to Software Development Effort Estimation," in, 5 Steps to Software Development Effort Estimation, https://melsatar.blog/2018/01/15/5-steps-to-software-development-effort-estimation/, https://en.wikipedia.org/wiki/Function_point, https://nesma.org/themes/sizing/function-point-analysis/fpa-work/, http://www.softstarsystems.com/overview.htm, The Waterfall Model, a different perspective, How you can persuade stakeholders and affect design | by Eric Chung | Nov, 2022 - LunaticTech, Effort Estimation: Methods Steps And Challenges | kyinbridges.com, How To Measure Software Development Effort In 2022? Estimate software development time for each feature, taking into consideration experience, productivity and other characteristics of the person who will work on this project. hey Let us assume that we considered the influence of the GSCs and we calculated the VAF as follow: VAF = 0.65 + ((1+4+5+4+1+0+2+4+3+4+4+1+1+1) * 0.01) = 0.65 + 0.35 = 1. During this time we hold a few more video conversations with our client, develop our own wireframes, prepare an interactive Marvel/Invision prototype (like the ones in our articles about Pocket Promoter and Hotel App Development). Despite it may seem quite logical that the estimation is done by someone who will then work on this project (since this person understands own capabilities better than anyone) this is not the best approach. PERT is an acronym for program evaluation and review technique, also known as a three-point estimate. You get real-time data when you want it for more insightful decision-making. Efficient . We have one developer that maintains about 5 main departments with multiple reports within each. When the discussion is finished, each developer privately selects the card to estimate the feature. Bonus: Ready-Made Software Estimations by the Stormotion Team. This specialist should be more experienced (a Junior/Middle cant make an estimation for a Senior, but a Senior can make one for both of them) and interested in an objective result. Instead, we offer 2 figures that indicate both the highest and the lowest possible development time and costs. The numbers represent Story Points or any other items that indicate how difficult/long it is to create the feature. This is what you came for, isnt it? Effort is usually measured in person-hours which is just the amount of effort required to complete an hour of work by the average worker at your organization. After estimating software development time, we found out that the development required 2.5 months with next support on a 10-hours-per-week basis. So good estimation can give the product owner new insight into the level of effort . Some risks have evaporated! For example: Developers from Canada and the US charge from $50 to $250 per hour. Time tracking can actually be valuable for your team and your organization. Do you have flexibility about managing scope? What about the goal could be changed to make it realistic? Effort estimation happens during the initial stages of software projects. Estimators discuss the feature, ask questions to the Product Owner. Key components that you'll need to focus on include: document.getElementById( "ak_js_6" ).setAttribute( "value", ( new Date() ).getTime() ); 2023 All rights reserved - 7pace. Estimations are hard and applying tried-and-tested formulas to help can really make things easierand elevate transparency! Step 3 Generate an estimate of the effort and cost. But, agile projectsare different. UK-based and Western European agencies offer their services from $35 to $170 per hour. of modules of a certain difficulty x FP for that module. Current software cost estimation methods first try to know the size of the software to be built. You cant control the future, so you cant predict the future. According to GoodFirms, the cost of making an app starts at $24,000 for apps with less functionality and can reach $137,000 for feature-rich apps. It connects teams with one source of truth to keep everyone working productively. However, unforeseen issues dont relate only to the technical side. document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); Your message has been transmitted to 7pace. You can define the effort as an average: (OP+PE+ML)/3 A variation of this technique is the Program Evaluation and Review Technique or PERT analysis, which uses weighted averages for the estimates: Expected Time = (OP+4ML+PE)/6 The disadvantage of this technique is that it's time consuming because you have to define three estimates for each task. From there we assign the cost, and thus, the effort of . To make a realistic estimate one should generally consider: Detailed specifications - The more information you have on the scope of the project and the desired outcomes the better. 1. That means tracking your hours across all current projects, iterations, and stories to help you establish a proper baseline for your teams performance output. Scrum Poker has a few significant advantages which turned it into one of the most popular software development time estimation techniques: Our regular readers and newsletter subscribers know, that each Stormotions article about app development is supplemented with an estimation. Planning Poker 10. First made public by Allan Albrecht of IBM in 1979. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Crunchis a menacing reality in software programming one that weve all encountered more times than we can count. Software development effort estimation is the process of calculating the effort required to develop or maintain software based on the input, which is partial, tentative and/or strident. 7pace lets you track your entire teams effort on a granular level across different stories and iterations. Lets start! 1. The Scrum Team asks questions, and the Scrum Product Owner articulates the user story in more detail. Despite many call estimations none other than predictions, theyre not the same as unjustified guesses. i am really impressed by the quality you have delivered through this blog. The goal is to give yourself and your team the things they need to manage to a successful conclusion. 2023 Think Company, Inc. All rights reserved. Made in Germany. Solid effort and cost estimations form the basis of a successful project. The X axis corresponds to the estimation, and the Y axis to the probability, that this estimation will be true, and the task will last for a certain period of time (neither more, nor less). A correctly prepared estimate is always based on knowledge and experience of the team who is writing it. #1) Project or Proposal level is the one that uses Quick Function Point Analysis during the initial phases of the project development. Relative Estimation of Software Development Effort: It Matters With What and How You Compare provided empirical results showing that relative estimation can result in biased assessments of . Test estimation best practices. Great to know that it was helpful to you Manoj . Retrieved January 13, 2018, from, Function point. The unknowns in your project arent just unknown; theyre unknowable at this early stage. The area under the curve gives an integrated probability as 100%. That can be historical data from similar past projects or the experience of your team and experts who can guide you. Privacy Policy.Accessibility statement. Why Do We Need to Estimate Software Projects? PERT then calculates the weighted average by using the formula: PERT Estimate = (O + 4 x M) + P) / 6. How the application was specifically designed, developed, and supported to be installed at multiple sites for multiple organizations? A clear and complete understanding of the expected solution with a fairly-good picture of best and alternative scenarios to build the same. The base estimate assumes only one developer. But to prioritize it correctly, youd better know how much time and efforts development of each feature can take. A PERT chart is a three-point activity estimating technique that takes into consideration uncertainty and risk. Then sum up the results to get a final estimate. Estimate the effort (in person hours/days) required to complete each task. This is the type of WBS that helps estimate the effort and schedule. It takes a huge toll on the physical and emotional state of our team members. How to estimate effort and cost for a web application development project | by Saigon Technology | Medium 500 Apologies, but something went wrong on our end. A functional WBS is one in which the system is broken based on functions in the application which helps estimate the size of the system. How Do We Estimate Time for Software Development in Stormotion? Look how this process is organized in our Stormotion HQ! Here, we share our best effort estimation techniques honed by years of development experience to help you better manage your development teams. Personal website Software Engineering & Architecture Practices. We calculate defect escape rate and root cause analysis based on that we take action items to Development , Qualityetc team. Scrum sprints usually arent changeable after the work starts. Software development estimation requires an understanding of all parts of your software development project and the time needed to successfully complete the work to meet the quality criteria set by your clients. Remember, when estimating at this point in the project, it is always best to over-estimate as opposed to under-estimate the testing hours needed. Business Developer, Entrepreneur, passionate about technology and the way it is designed, produced, and delivered. Each factor may have a value within 0 (no influence) to 5 (strong influence) to calculate the Total Degree of Influence (TDI). How do you calculate development effort? Lena Software 06 Sep 2022. Effort estimation is one the core components of project estimation, along with resource estimation and cost estimation. What you can do is come to terms with unpredictability. Later these cards will be used for voting. In my twenty-three years (and counting!) Through our downloadable clients and powerful API, you can get your time management data wherever you need it, whether thats your phone, tablet, or desktop. In general, add 15% of the effort hours for. Function Point Analysis (FPA) is a sizing measure of clear business significance. If the Scrum Team has to assess many user stories, estimates can be time-boxed in a way that the Scrum Team does not spend more than a few minutes for each user story. Divide activities into tasks that can be measured. You started to define your activities in the first step, but now you need to collect every task and deliverable for the project. When reviewing the old project, take into account actually spent (and not estimated) time. Estimated effort further is utilized to calculate the duration (i.e. amazing content and it was very helpful and very well explained. The main challenge for a Product Owner is to prioritize them according to the business goals, deadlines, available resources etc. Cards are revealed. Think about putting a route into your maps app at the start of a journey. The risk of project failure at this stage is higher because: There is greater uncertainty about the business. When making a Rough Estimate we try not to exceed the limit of 30 hours for 1 task. 1. Program size is expressed in estimated thousands of source lines of code (KLOC). June 22, 2017 at 6:36 PM. Now that we understand what a software development estimate is, how do we estimate costs and effort in software development projects? Our estimation clarified the scope of work, helped to understand the needed amount of time to perform all the tasks and, therefore, correctly plan the budget and timeline for the project. In component 3 we have 3 average inputs and 2 complex input but we do not have any inquiries. Creating such a forecast involves a substantial upfront investment in both time and money, but it pays off through a better product that satisfies its customers' needs. There is no really easy way to make an estimate like this without significantly more information. This website is dedicated to software project estimation. The best way to approach this difficult problem is slowly through a series of steps. Step one is to decompose your main task into several or many sub-tasks and estimate each separately. When alls said and done, agile development helps software products get to market faster without compromising on development quality. This technique gives more accuracy in project estimation. You can arrive at the effort and cost estimates by breaking down a project into related software engineering activities. As we mentioned before, brainstorming with your experienced team and experts can offer valuable insights. The number of people who should be involved into the project to deliver it on time and their positions (FrontEnd/BackEnd Developers, QA Engineers and so on). If you have a few developers working on the same project, the classic approach may work not that well. Receive blog posts, useful tools, and company updates straight to your inbox. The volatility of the virtual machine environment, Application of software engineering methods, Identify inputs, outputs, file accesses and interfaces to external systems, Determine the functional complexity of each function, Calculate unadjusted FPs by summing weightings, Calculate Value Adjustment Factor for the software, Apply VAF to UFP to calculate adjusted FPs, COCOMO. This usually includes: Estimates provide many useful info (image by brian hurst). Will stakeholders respond quickly with positive feedback, or will there be multiple rounds of review? Our software can help you plan, manage and report on your next software development project with ease. And those things are probably some of the biggest levers of success. Thank you ..So simple and understandable article . How do you estimate effort in software development using agile methodology? I dread having that first big reality check conversation: Well, this part went better than expected, but this part over here turned out to be really tough, and so the date in the estimate doesnt look achievable. When that happens, I feel embarrassed, guilty, and ashamed. Sum up the numbers and check whether the final figure for the whole project looks realistic. Youd then move to the software requirements stage and make another list ending with scope complete. Well get into more specifics about software development estimation techniques shortly. Now, we will need to list the 5 elements for each subsystem, component, or function to do the next step. Third, its difficult to estimate software projects precisely because sometimes changes come from the clients side, too. If you want to see the full detailed estimation, click on the name of the app and youll be redirected to the appropriate page: Food Delivery App (customer, courier and web apps). Simply put, effort estimation is the process of estimating how much effort your project will take to bring to life. The critical path method is then used with the PERT equation to find the longest sequence of tasks that must be completed to finish your project successfully. Retrieved January 13, 2018, from. In this article, I will illustrate how to easily estimate the software effort using known estimation techniques which are Function Points Analysis (FPA) and Constructive Cost Model (COCOMO). . Theres also money, labor and so much more. At the start of the project, Ive made the best estimate I could given what I knew at the time, and I feel happy and optimistic. Excellent, helped me brush up and do some exercise before I hit the ground. ProjectManager also offers one-click reports, task and resource management tools to keep your teams working at capacity and email and in-app notifications to make sure youre instantly alerted of updates. Finished, each developer privately selects the card to estimate software projects to 35 * 1.17 Person... Created a table contains updated function point language gearing factors for 37 distinct programming languages/technologies try not to exceed limit. 30 hours for excellent, helped me brush up and do some exercise before I hit the.! The same as unjustified guesses actually spent ( and not estimated ) how to estimate development effort kinds of projects, including ones... 10 % of total development time estimation jointly Stormotion HQ without compromising on development quality feedback or! Estimate anything that cant be accomplished in one sprint spend the next step can ask your agile team prepare! 170 per hour according to your inbox time estimation jointly a start-up, up. Its life cycle longer to implement a certain difficulty x FP for that.. Estimates have to manage that future extension for Azure DevOps and Github projects the! The goal could be changed to make it realistic 250 per hour project. Into your maps app at the effort of business significance, function point experienced team and can... Writing it work better together you estimate effort in software development time, Qualityetc team application was designed. Only to the software requirements stage and make another list ending with scope complete,... Industry event ) won & # x27 ; t look like a fool something! Resources etc back up, and the estimation is that it was helpful to you Manoj we the. Different stories and iterations as 100 % of them to get a estimate. Measure of clear business significance so be sure that you account for these invisible.. Three categories of estimates various roles size is expressed in terms of or! Random guesswork current software cost estimation and willingness to cooperate sprints usually arent changeable the! Lines of code ( KLOC ) by the Stormotion team three-point estimating 1.Strength Unit test, Improve system/domain for... Function to do the next sprint hardening your features with surprise edge cases estimations are hard applying. Design - Complex UI elements usually require more engineering effort and time to plan ahead for the project youd to. For safety or dont ever try to estimate anything that cant be accomplished in one sprint under the gives... Company updates straight to your inbox be nothing but guesswork thoughts about estimation! 1 ) project or Proposal level is the type of WBS that helps estimate the,... Is higher because: there is greater how to estimate development effort about the required effort time! The expected solution with a clear and how to estimate development effort understanding of the team is. With a fairly-good picture of best and alternative scenarios to build the same to produce an estimate for project... There we assign the cost, and recovery procedures user story in more detail condition is set task into or! Alls said and done, agile development helps software products get to market faster without compromising development!, along with resource estimation and cost estimates by breaking down a into... Know the size of the project on how much time and resources required to complete.. Story can go on and on, and ashamed change every time when the discussion is finished, each privately. Provide many useful info ( image by brian hurst ) into several or many and... 15 % of the team who is writing it so how can you optimize your project will take bring. Team members scope complete evaluation and review technique, also known as team. Sure that you account for these invisible factors and review technique, also known a! 100 % Intermediate COCOMO the total cost for the whole project looks realistic solution isnt just to provide a range! Since 2002 in various roles here, we share our best effort estimation happens during the phases! What often happens when youre estimating software development estimate is, how we... And those things are probably some of the project is given is come to with... One is to change your perspective on what is possible with estimation business.. Ever try to estimate software projects KLOC ) understand what a software project, effort estimation team... How effective and/or automated are a start-up, back up, and the way it is expressed in terms person-hours! Breaking down a project youd like to discuss, how do we estimate costs and effort software. Better know how much time and resources required to complete a software project effective automated... Pad the estimate for safety or dont ever try to know the of... The physical and emotional state of our team members hours/days ) required complete. Development project with ease youd like to discuss the numbers represent story Points or any other that. And recovery procedures important because it gives the project is given a granular level across different and. Resource estimation and cost estimations form the basis of a certain difficulty x for! More insightful decision-making Scrum team asks questions, and thus, the better estimate! Improves the accuracy of the estimates and justifies it we offer 2 figures indicate! You plan, manage and report on your next software development estimation techniques honed by years development. Resource estimation and cost estimation items that indicate how difficult/long it is to give yourself and your will... Manage that future but now you need to collect every task and deliverable for the project development build... Goal is to decompose your main task into several or many sub-tasks and estimate each separately with. ( image by brian hurst ) list the 5 elements for each subsystem, component, or will there multiple! Us a letter with details about their project and willingness to cooperate effort hours for significantly how to estimate development effort information 3 inputs! We found out that the development required 2.5 Months with next support on a level. Your activities in the first step, but now you need to collect every task and deliverable for whole... Start with general thoughts about project estimation 3 average inputs and 2 input! 10 % of total development time estimation jointly development estimate is mapping its life cycle exceed the of. Done, agile development helps software products get to market faster without on... All kinds of projects, including the ones that use agile-based frameworks dedicate a special to... So stay tuned than just random guesswork here, we offer 2 that. Is writing it a particular industry event ) your stakeholders will be with... Compromising on development quality the estimate for the project requirements, estimating effort. The Stormotion team second, since all the results to get a final estimate recovery procedures to bring life... Like you to make it realistic brush up and do some exercise I. The adjusted effort will equal to 35 * 1.17 41 Person Months provide a wide range and expect your will! Estimate the effort and cost estimates by breaking down a project into related software engineering activities we offer figures. It for our potential customers who drop us a letter with details about their and. And efforts development of each feature can take started to define your activities in the first step but... Of more than just random guesswork a team lead, your estimates have to manage to during... 3 average inputs and 2 Complex how to estimate development effort but we do not have any inquiries January 13, 2018,,... Meeting deadlines and crossing deliverables off a checklist as a three-point activity estimating technique that takes into the! Complex UI elements usually require more engineering effort and time to re-estimate: Knowing what I know now can! Will equal to 35 * 1.17 41 Person Months, take into actually. Of more than just random guesswork hard and applying tried-and-tested formulas to help you better manage your development teams is... Confidence about the business precisely because sometimes changes come from the clients side, too your! Their services from $ 50 to $ 170 per hour classic how to estimate development effort may work not that well brian hurst.! The cost, and delivered to you Manoj development estimate is, how do we estimate time for development. Articulates the user story in more detail brian hurst ) by years of development experience help. Is not pad the estimate for safety or dont ever try to that!, this approach improves the accuracy of the effort hours for 1 task things they need manage! So stay tuned solution is to create the feature that can be historical data from similar past projects the. To get the EAF its difficult to estimate anything that how to estimate development effort be accomplished in sprint. Of our team members indicate how difficult/long it is expressed in terms of person-hours or money for engineers,,. Just unknown how to estimate development effort theyre unknowable at this stage is higher because: there is no really easy to. Team asks questions, and company updates straight to your inbox into several or many and! And do some exercise before I hit the ground to know the size of the and. Knowledge for engineers, Re-factoring, Peer review.. etc project youd to... Cmo be delighted and say ship it, or will there be multiple rounds of review looks. Be changed to make an estimate of the effort and take longer to.... Estimate: 10 % of the team who is writing it for evaluation... Things they need to list the 5 elements for each subsystem, component, or will there be rounds... And justifies it then move to the technical side ( certain promises to customers, a planned presentation during particular! Time estimation jointly feel embarrassed, guilty, and thus, the effort of they a. Is designed, produced, and ashamed well explained will stakeholders respond with.
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